Air Canada and Jet Airways enter a codeshare

Jet Airways (9W) and Air Canada (AC) have entered a three-year codeshare agreement, enabling Canadian passengers access to India via London from February 21, 2011.

The pact sees the Canadian carrier’s “AC” code on Jet Airways flights from London Heathrow Airport to India as well as its flights from India to Canada.

The deal will last until AC takes delivery of a Boeing B787 Dreamliner in 2013, at which point it will resume its own operations in the subcontinent.

This move takes place against the background of an air traffic impasse between Canada and the United Arab Emirates (UAE). For five years, Emirates and Etihad have been lobbying for increased traffic rights in and out of Canada due to the lucrative Canada-India corridor via the UAE, particularly the Toronto-Mumbai route.

Tensions peaked late last year when Air Canada expressed fears that enabling the UAE carriers greater access to the Canadian aviation market would lead to fierce competition on transatlantic routes (see story here).